What will the yearly after-tax depreciation benefit

Reference no: EM131959305

Question: Your company is thinking about a new project that will require $2.2 million of new equipment at the start of the project. The equipment will have a depreciable life of 12 years and will depreciate to a book value of $400,000 using the straight-line depreciation method. The cost of capital is 15 percent, and the firm's tax rate is 36 percent. What will the yearly after-tax depreciation benefit to the company be over the depreciable life of the equipment?

Reference no: EM131959305

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